Emerson Electric Co. EMR is likely to witness earnings and revenue growth when it reports first-quarter fiscal 2026 (ended September 2026) results on Nov. 4, before market open. The Zacks Consensus Estimate for revenues is pegged at $5.12 billion, indicating growth of 5.4% from the prior-year quarter’s figure.
The consensus mark for earnings is pinned at $1.85 per share, which has increased a penny in the past 60 days. The figure indicates a jump of 14.2% from the prior-year figure. The company’s bottom line surpassed the Zacks Consensus Estimate by 1.8% in the last reported quarter. EMR beat on earnings in two of the trailing four quarters and matched the mark in the other two, delivering an average surprise of 1.3%.
Let’s see how things have shaped up for Emerson prior to the announcement.
Factors Likely to Have Shaped EMR’s Quarterly Performance
Strength across Emerson’s Intelligent Devices and Software and Systems groups is likely to have driven its performance in the fiscal fourth quarter. Solid momentum in the final control segment, driven by strength in power, LNG and mainstream gas end markets, is likely to have benefited the top-line performance of its Intelligent Devices group in the fiscal fourth quarter. The Sensors segment is also expected to have delivered healthy growth in the fiscal fourth quarter. For the fiscal fourth quarter, the Zacks Consensus Estimate for the group’s total sales is pegged at $2.88 billion, up 7.9% sequentially.
Solid momentum in the Control Systems & Software segment, supported by strength in the power end market, is likely to have augmented the performance of the Software & Systems group. Also, strength in the aerospace & defense and semiconductor end markets has been aiding the Test & Measurement segment. For the fiscal fourth quarter, the consensus estimate for the group’s total sales is pegged at $1.66 billion, indicating a 1.2% rise from the previous quarter’s number.
Increase in demand for electrical products and growth in industrial activity in North America are expected to have augmented the Safety & Productivity segment’s performance in the to-be-reported quarter.
The company has remained focused on expanding its product offerings and market presence through buyouts. In March 2025, Emerson acquired the remaining shares of AspenTech, making it a wholly owned subsidiary. This move strengthened the company’s automation portfolio and enhanced its software-defined control capabilities. The buyout is expected to have boosted EMR’s top line in the quarter.
However, rising costs and expenses owing to higher input costs and restructuring-related actions are likely to have affected EMR’s margin performance. Also, given the company’s substantial international operations, foreign currency headwinds are likely to have marred its margins and profitability.
Earnings Whispers
Our proven model predicts an earnings beat for Emerson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as elaborated below.
Earnings ESP: EMR has an Earnings ESP of +0.40% as the Most Accurate Estimate is pegged at $1.86 per share, higher than the Zacks Consensus Estimate of $1.85. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: EMR currently carries a Zacks Rank of 2.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some other companies, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.
Stanley Black & Decker, Inc. SWK has an Earnings ESP of +1.10% and a Zacks Rank of 2 at present. The company is slated to release third-quarter 2026 results on Nov. 4.
Stanley Black’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.3%.
W.W. Grainger, Inc. GWW has an Earnings ESP of +1.44% and a Zacks Rank of 3 at present. The company is slated to release third-quarter 2026 results on Nov. 4.
W.W. Grainger’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.9%.
Eaton Corporation plc ETN has an Earnings ESP of +0.45% and a Zacks Rank of 2 at present. The company is scheduled to release third-quarter 2026 results on Nov. 3.
Eaton’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 1.3%.
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Emerson Electric Co. (EMR): Free Stock Analysis Report
Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report
Eaton Corporation, PLC (ETN): Free Stock Analysis Report
W.W. Grainger, Inc. (GWW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).